Panel puts block on Saputo
The order, made after an application by rival suitor Murray Goulburn, was announced to the market on Friday afternoon as Saputo revealed it had amassed a 9.65 per cent stake.
Just a week ago Saputo had less than 1 per cent of Warrnambool, but acceptances have started to flow in after the Canadian group this week conditionally sweetened its bid to $9.20 a share.
Murray Goulburn, Australia's biggest dairy company, lodged the application with the panel on Wednesday and the following day sweetened its own bid to $9.50 a share, valuing WCB at $533 million.
In addition the milk co-operative is urging the Warrnambool board to reconsider paying shareholders a special dividend, which would take its bid to $10.06.
Warrnambool this week scrapped its plan to pay a 56¢ franking credit if the holding of its preferred bidder, Saputo, exceeded 50 per cent.
The panel ordered Saputo not to "take any further steps to process any acceptances received under its bid for Warrnambool".
Murray Goulburn had previously complained that Saputo's sweetened offer was in fact a lower offer than its previous one because it excluded the special dividend.
The Takeovers Panel, led by fund manager Andrew Sisson, is yet to release reasons for its decision to freeze Saputo's bid.
The move came as New Zealand's Fonterra spent $14.7 million to boost its stake in NSW processor Bega Cheese, which is also a bidder for Warrnambool. Fonterra bought 3 million shares at $4.89 each, to lift its stake in Bega to 9.06 per cent. Earlier this month Fonterra bought 9.3 million shares in Bega at $4.95 as part of a blocking stake, aimed at securing its position in the event Bega became a takeover target.
Fonterra finalised its purchase of Tamar Valley Dairy this week, securing control of the small Tasmanian yoghurt business from a voluntary administration sale.
Frequently Asked Questions about this Article…
The Takeovers Panel ordered Saputo to stop buying shares in Warrnambool Cheese & Butter after a complaint from rival bidder Murray Goulburn. The panel's decision was made to prevent Saputo from processing any further acceptances under its bid.
Before the Takeovers Panel's decision, Saputo had increased its stake in Warrnambool Cheese & Butter to 9.65%. The panel's order halted any further share purchases by Saputo, affecting its ability to increase its stake further.
Murray Goulburn, Australia's largest dairy company, responded by lodging an application with the Takeovers Panel and sweetening its own bid to $9.50 per share, valuing Warrnambool at $533 million. They also urged the Warrnambool board to consider a special dividend to increase their bid to $10.06.
The special dividend was a key factor in the takeover bids. Murray Goulburn argued that Saputo's sweetened offer was effectively lower because it excluded the special dividend, which could have increased the value of their bid.
Fonterra, a New Zealand dairy company, increased its stake in Bega Cheese, another bidder for Warrnambool, by purchasing shares to secure its position. This move was part of a strategy to maintain influence in the event Bega became a takeover target.
Saputo's initial bid for Warrnambool was met with increased acceptances after they conditionally sweetened their offer to $9.20 per share. This led to a rapid increase in their stake from less than 1% to 9.65%.
Fonterra successfully increased its stake in Bega Cheese to 9.06% by purchasing additional shares. This investment was part of a strategy to secure a blocking stake in Bega, ensuring its position in the competitive dairy market.
Warrnambool scrapped its plan to pay a 56¢ franking credit if Saputo's holding exceeded 50%. This decision was part of the ongoing strategic maneuvers in the competitive takeover bids for the company.
Call 1300 880 160
Start a chat
Schedule a call
